MetiNews.Com JPMorgan Global Growth & Income Trust: Picks of the bunch Breaking news

MetiNews.Com - THIS IS AN ADVERTISING FEATURE

MetiNews.Com JPMorgan Global Growth & Income Trust: Picks of the bunch Breaking news

MetiNews.Com - THIS IS AN ADVERTISING FEATURE

MetiNews.Com  JPMorgan Global Growth & Income Trust: Picks of the bunch Breaking news
17 May 2021 - 10:27

Breaking News ! THIS IS AN ADVERTISING FEATURE Hidden gems, tech leaders and brands so famous they've been forgotten: all have met the exacting scrutiny of J.P. Morgan Asset Management analysts to earn their places on the Global Growth & Income portfolio. LEADING-EDGE MONOPOLY In the 1980s, ASML operated from a leaky shed in the Netherlands. Today it’s a global innovation leader, reporting net annual sales of €14bn in January.[1] Its latest product has paved the way for 5G technology and faster cloud computing; its role in the complex semiconductor sector may explain why, despite its significance, it has evaded the radar of many investors. ASML is, however, a favoured stock of JP Morgan Global Growth & Income (JGGI). So is ASML’s customer and fellow acronym, TSMC – the Taiwan-based semiconductor manufacturer. Both companies enjoy “a monopoly of the leading edge”, explains Tim Woodhouse, portfolio manager at JGGI. ASML’s extreme ultraviolet lithography is essential to the work of every brand in the tech world, from Intel to Samsung, Woodhouse points out. “It’s an incredible example of investing in a technology that means you are so far ahead of anybody else, so core to any kind of technological progress, that there isn’t really a choice for anyone other than to invest in your machines,” he says. Because ASML continues to innovate and to invest in its research and development, it can maintain such a monopoly – and remain a sound investment – over many years. For the same reason, JGGI’s emerging markets team has owned TSMC for several decades. FOCUS ON THE FUTURE Such potential longevity is all too easily missed by standard investment analysis, with its focus on short-term prices. That approach can fail to pick up the effect of a firm’s investment in research and development or new acquisitions: “Those future returns get underestimated in high-quality businesses, and that kind of business does compound over time,” says Woodhouse. Unconstrained by geography or sector, JGGI analysts are free to find firms with the best prospects and the capacity to achieve them. It’s those experts’ local presence across the world, powered by a $150m annual research budget that equips the fund with the kind of detailed insight it needs. “We want our analysts to know these companies better than anybody else,” Woodhouse says. TECH GIANTS KEEP GROWING That kind of knowledge enabled JGGI to make the right call on Amazon – written off by many in its early days as a loss-maker with no profit potential. In fact, its unique proposition and the barriers to entry for competitors were signs of the company’s potential to swell to the behemoth of today. From JGGI’s perspective, it still has a long way to grow, not least in its public cloud proposition. Another tech giant, Alphabet (the parent company of Google), features strongly on the JGGI portfolio for similar reasons. Its investments in wider activities – including Verily, its healthcare AI business, and Waymo, its autonomous driving project – are compelling propositions as investments and for the future of society, says Woodhouse. THE ESG FACTOR JGGI’s projections about businesses’ long-term prospects include a robust focus on environmental, social and governance issues. Forty criteria are examined, from a company’s vulnerability to greenhouse gas regulations to its labour relations and the diversity of its board. Good performance and progress in these areas suggests business sustainability. One outstanding example on the JGGI portfolio is the Danish firm Ørsted – not just a growing player in the offshore wind market, but ranked as the world’s most sustainable energy company for three consecutive years. “Businesses like Ørsted have developed precisely because of the desire to find renewable sources of energy. Now they’re a leader in offshore wind, winning contracts in the US and really driving that change,” Woodhouse enthuses. STILL THE REAL THING But JGGI’s focus goes far beyond fast-growing tech firms. It can extend to strong, stable businesses that continue to provide value. Coca-Cola, for example, is so ubiquitous as to be overlooked. But Woodhouse points to the competitive advantage of its extensive distribution capabilities, as well as its constant drive to create new products, such as premium bottled water brands, and to grow new markets. “Coca-Cola has been forgotten, but they generate a very good dividend yield at this point,” he says. “The assumption is that Coke is global and everybody knows what it is, but in fact they are set to make pretty solid growth in emerging markets. They really do have what we think is an important future.” Coca Cola – Diversified revenue and innovation COMPETITIVE ADVANTAGE Besides market data, JGGI’s analysts take into account even less tangible factors, such as powerful marketing ability. That’s the case for luxury goods conglomerate LVMH. Woodhouse sees demand for luxury products continuing to grow worldwide, but it’s LVMH’s unique approach to promoting its brands that he values in the company. “LVMH had acquired Tiffany, which might have been the gold standard for jewellery 20 years ago. After five years of being owned by LVMH, that might be the case again,” he suggests. “That ability to take brands, constantly refresh them and drive new growth is something we have to understand as a competitive advantage.

. It adds up to a attractive proposition for investors seeking growth as well as income. [1] https://www.asml.com/en/news/press-releases/2021/asml-reports-eur-14dot0-billion-net-sales-and-eur3dot6-billion-net-income-in-2020 FIND OUT MORE ABOUT JPMORGAN GLOBAL GROWTH & INCOME Material ID: 0903c02a82b0521c This is a marketing communication and as such the views contained herein do not form part of an offer, nor are they to be taken as advice or a recommendation, to buy or sell any investment or interest thereto. Reliance upon information in this material is at the sole discretion of the reader. Any research in this document has been obtained and may have been acted upon by J.P. Morgan Asset Management for its own purpose. The results of such research are being made available as additional information and do not necessarily reflect the views of J.P. Morgan Asset Management. Any forecasts, figures, opinions, statements of The warning in brackets must be removed if the Marketing Communication has been released for General Public. Financial market trends or investment techniques and strategies expressed are unless otherwise stated, J.P. Morgan Asset Management’s own at the date of this document. They are considered to be reliable at the time of writing, may not necessarily be all inclusive and are not guaranteed as to accuracy. They may be subject to change without reference or notification to you. It should be noted that the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Changes in exchange rates may have an adverse effect on the value, price or income of the products or underlying overseas investments. Past performance and yield are not reliable indicators of current and future results. There is no guarantee that any forecast made will come to pass. Furthermore, whilst it is the intention to achieve the investment objective of the investment products, there can be no assurance that those objectives will be met. J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. To the extent permitted by applicable law, we may record telephone calls and monitor electronic communications to comply with our legal and regulatory obligations and internal policies. Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our EMEA Privacy Policy www.jpmorgan.com/emea-privacy-policy. Investment is subject to documentation. The Annual Reports and Financial Statements, AIFMD art. 23 Investor Disclosure Document and PRIIPs Key Information Document can be obtained free of charge from JPMorgan Funds Limited or www.jpmam.co.uk/investmenttrust. This communication is issued by JPMorgan Asset Management (UK) Limited, which is authorised and regulated in the UK by the Financial Conduct Authority. Registered in England No: 01161446. Registered address: 25 Bank Street, Canary Wharf, London E14 5JP.

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MetiNews.Com JPMorgan Global Growth & Income Trust: Picks of the bunch Breaking news


MetiNews.Com JPMorgan Global Growth & Income Trust: Picks of the bunch Breaking news


MetiNews.Com JPMorgan Global Growth & Income Trust: Picks of the bunch Breaking news


MetiNews.Com JPMorgan Global Growth & Income Trust: Picks of the bunch Breaking news

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